NextGen Apartments LLC has purchased a property located at 2106 Manhattan Beach Blvd in Redondo Beach / Beach Cities. The multifamily asset consists of 18 units and spans a total area of 17,360 square feet. The transaction was facilitated by broker Jonathan Weir. The sale price for this property was $9,350,000, resulting in a price per square foot of $538.59. The buyer acquired the property from a seller who had owned it for over 20 years. The deal was signed in February, a month prior to the COVID-19 outbreak. This property is considered rare in the submarket, as there are only 139 15+ unit buildings in the Beach Cities area. With a capitalization rate (CAP) of 3.56% and a gross rent multiplier (GRM) of 18.08 based on current income and expenses, the property presents a valuable investment opportunity.

Summary of transaction details

• Property Type: Multifamily
• Transaction Amount: $9,350,000
• Address: 2106 Manhattan Beach Blvd
• Market: Redondo Beach / Beach Cities
• Buyer: NextGen Apartments LLC
• Seller: Not Disclosed
• Broker: Jonathan Weir - Not Disclosed
• Square Footage: 17,360 SF
• Price per Square Foot: $538.59
• Number of Units: 18
• Price per Unit: $519,444
• CAP: 3.56%
• GRM: 18.08

The sale of this property to NextGen Apartments LLC, an active local buyer, presents a significant opportunity. The seller held onto the property for more than two decades before deciding to sell. Despite the impact of COVID-19 on the real estate market, the deal was already under contract prior to the outbreak. This transaction stands out in the submarket due to the scarcity of 15+ unit buildings, with only 139 such properties found in the Beach Cities area. The property's 3.56% CAP and 18.08 GRM, based on current income and expenses, further add to its appeal.